5 Ways Leaders Can Build Successful Teams

Many of us were taught early in life to “follow the leader” to achieve success. But in today’s complex, global economy, following the leader is no longer good enough. You need to follow the right type of leader.

Team leadership is more critical than ever, and effective collaboration often spells the difference between winning and losing. Fortunately, most leaders know this. Research shows that executives recognize the value of a team approach. More than 8 in 10 (84%) of the 821 global business executives we surveyed say that their organization’s ability to develop and manage diverse, high-performing teams is essential to their future success.

But here’s the catch: the survey also reveals that half of the respondents do not believe their leaders are equipped to manage and motivate such an eclectic mix of talent.

So what can an organization do to make sure its leaders are able to form the right types of teams and inspire them to reach their full potential? Here are five ways to get your teams on the right track and keep them there:

1. Create the right mix of members

Nearly two-thirds (62%) of the executives we asked say their teams have become more diverse. In order to stay ahead of your competition, diversity must be more than just an HR campaign; it must be the way business is done.

There are many methods to unleash the power of diverse teams. It begins with recruiting – choosing new hires that already possess a global mindset, and then offering them interesting, challenging and global work experiences. Also, managers should receive continuous coaching to help them develop the mentality and habits for leading inclusively. And don’t forget to nurture your organization’s alumni network to maintain valuable connections and perspectives from different geographies and industry sectors.

2. Foster debate

In today’s international, interconnected marketplace, organizations are making strides in forming teams across borders and cultures. But forming teams is easy; getting them to succeed is harder. This calls for inclusive leadership, or the ability to encourage all team members to voice their diverse perspectives and dissent. In fact, 85% of the executives we surveyed see this as an effective way to improve performance.

For example, one team member may be consistently dominant, which makes it difficult for the team to harness the diverse experiences and skills it possesses. Leaders need to be taught how to manage such challenges. Make certain your organization trains your leaders to successfully strike a cross-cultural balance, and make sure no voice goes unheard.

3. Share the vision

Teams need clear, achievable goals in order to be effective. When we surveyed leaders about the key attributes of a high-performance team, they point to these goals as the most important factor. Individual team members must have a clear sight line from their specific day-to-day responsibilities to the broader objectives of the business.

To accomplish this, align your people behind a long-term strategy that defines who you are in the marketplace and what you need to accomplish to meet your goals. At EY, our strategy is called Vision 2020. It provides us both motivation and clarity of direction (also reminding us what not to chase) as we work with our clients, our colleagues and our stakeholders every day. In a phrase, it gives us purpose.

4. Commit to quality and measure results

There’s nothing like accountability to make sure that everyone on the team knows his or her role. This is what makes leadership so critical. Team members will, by nature, differ in the way they work, communicate and collaborate. But if a leader makes it clear to everyone the metrics the organization uses to gauge success, the team will be better focused and stay on task.

5. Use technology to create connections

Far-flung geographies can complicate teamwork, but technology helps high-performing teams by erasing regional and national boundaries. Nearly two-thirds of executives say that the extent to which teams are helped by technology has increased over the past three years.

While more than 70% of executives in our survey prefer face-to-face team interactions, the benefits of in-person meetings must be weighed against the stress and resource drain of business travel. This is where technology comes in. Companies such as EY are investing in telepresence, which reduces the need for travel and puts our people in the same room virtually.

Executives in our survey also like interaction tools such as emails/email discussion groups (45.7%), conference calls (35.6%) and internal social media tools (34%).

Keep your eyes on the prize

I am convinced that companies that learn to harness the power of cross-functional, diverse and multicultural teams will outperform their more parochial competitors. The numbers appear to support this: we see a direct correlation between team-building ability and bottom-line results.

In our survey, at the best-performing companies (EBIDTA growth of 10% or greater), 39% of respondents say their organization is “excellent” at building and managing diverse teams. At second-tier companies (EBIDTA growth of 0 to 10%), only 27% rated their team building as “excellent.” In the bottom tier (0 to negative growth), just 11% graded their team building as “excellent.”

The lesson is clear: executives who understand and codify the essence of successful team leadership will be the winners. This will also help them drive toward that critical corporate prize – continual innovation – and deliver what leaders are paid for: results.

Tell me: What practices does your company have to groom leaders? How are you fostering environments to build and retain top teams?